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Replies (8)
- Michael Mullin, "WA and CA FHA Expert"
- Contributions:369
This is a tough one Scott - you should have included your Seattle agent before you walked into that home. It is unlikely that the builder will cooperate with him or her at this point - yet your agent is the one who really needs to answer your answer about how to negotiate. That's what a buyer's agent is for. Even if your Seattle agent didn't want to follow you down to Olympia they could have referred you to a trusted agent in the area who could help you with this.
Covering 2% in closing costs should not be that difficult to handle. I'm guessing the lender is Golf Savings/Sterling? If the builder won't pay the costs for you (and keep in mind that the lender has a vested interest in getting this home sold because they probably made the construction loan on the home and want it off their books) then ask the lender what the interest rate would be if they covered that 2% for you. More than likely it's going to be higher than 4.25% and you may have to make a choice as to what's more important to you - the rate (which is pretty sweet!) or not having to come out of pocket that 2%.
Covering 2% in closing costs should not be that difficult to handle. I'm guessing the lender is Golf Savings/Sterling? If the builder won't pay the costs for you (and keep in mind that the lender has a vested interest in getting this home sold because they probably made the construction loan on the home and want it off their books) then ask the lender what the interest rate would be if they covered that 2% for you. More than likely it's going to be higher than 4.25% and you may have to make a choice as to what's more important to you - the rate (which is pretty sweet!) or not having to come out of pocket that 2%.
- Jeff Stobie, "homer21"
- Contributions:68
Get your agent involved. You need representation. If these are bank owned properties offering special financing they may take your 5% down and do the deal. Last year I put someone into a Homestreet bank owned property for zero down, no mortgage ins and 4.5% 30 yr fixed and the bank paid the closing costs.
They want to move inventory and if you are a safe risk for them they can do just about anything they want on there own product. Make an offer of what you want, it can't hurt but get your agent involved. If you end up having to go with FHA you should be able to get all 3.5% paid and may get the house for less too. They need to get rid of this stuff!
They want to move inventory and if you are a safe risk for them they can do just about anything they want on there own product. Make an offer of what you want, it can't hurt but get your agent involved. If you end up having to go with FHA you should be able to get all 3.5% paid and may get the house for less too. They need to get rid of this stuff!
- Mike Conner, "Mike Conner"
- Contributions:127
Lots of things to think about here so let me do my best to answer your questions based on what info you've provided...
1. Tough to know what you should offer without knowing anything about the location and characteristics of the home. Your offer should ultimately reflect what value YOU place on the home, not the builder. And the issue of closing costs will depend on your offer. Keep in mind the builder will be looking at the net offer (price minus closing costs), but they will also want to make sure they sell the home for a certain price in order to set a basis for future sales in the development. I would suggest offering an amount that is in line with other sales in the neighborhood but ask the builder to pay 3% toward your closing costs. Seller-paid buyer closing costs are not published so the builder can maintain their pricing structure while you bring less cash out of pocket. The other thing I might suggest is to get a good faith estimate from the preferred lender and compare it with a few other good faith estimates from lenders of your choice. You may be able to get the same deal or better from someone else.
2 The question of agency is a tricky one also. Did you sign a buyer agency agreement with your agent in Seattle? Did you sign up on any registry with the on site agent? If you have not signed an agreement to be represented by any certain broker then it is totally up to your judgement of who will best represent you in the purchase...out of area agent, site rep for the builder, or a local specialist that is not affiliated with the builder.
Good luck!
- Ryan Halset, "RyanHalset"
- Contributions:730
1. Without knowing your full scenario, I would typically advise to have the seller/lender pay your closing costs...especially if you only have a minimal amount to put down. The extra cash will come in handy for furniture, moving expenses, etc. I would also try to get the low rate AND the closing costs covered if you can.
2. I would still pull your agent into the deal to help negotiate and write up an offer that protects your interests. You want someone on your side that only has your best interest in mind. Plus, if your agent is worth their weight, then writing up an offer on a bank owned home isn't going to be all that different in Olympia as it is in Seattle.
Good Luck!
2. I would still pull your agent into the deal to help negotiate and write up an offer that protects your interests. You want someone on your side that only has your best interest in mind. Plus, if your agent is worth their weight, then writing up an offer on a bank owned home isn't going to be all that different in Olympia as it is in Seattle.
Good Luck!
- Cheryl Frable, "cherylfrable"
- Contributions:304
You should have your own agent work for you on this transaction. They will help you with your questions. Site agents dute is to the seller...
- Tonya Brobeck, "Tonya Brobeck"
- Contributions:637
Hi Mtnbikescott,
I would definitely get your own agent involved if you didn't already put in an offer or sign anything to have the listing agent work for you. The fact that your Seattle agent has been working for you suggests they have been loyal to you and may very well drive to Olympia. Remember us agents are licensed in the state. It shouldn't be difficult for him/her to pull the comps around the subject home you want to purchase and put together an offer on your behalf.
Atleast I would do it for any of my clients that shifted out of the orginal area they were looking. In fact, I have.
I would definitely get your own agent involved if you didn't already put in an offer or sign anything to have the listing agent work for you. The fact that your Seattle agent has been working for you suggests they have been loyal to you and may very well drive to Olympia. Remember us agents are licensed in the state. It shouldn't be difficult for him/her to pull the comps around the subject home you want to purchase and put together an offer on your behalf.
Atleast I would do it for any of my clients that shifted out of the orginal area they were looking. In fact, I have.
- Ofe Polack, "Ofe Polack"
- Contributions:1418
If you are working with an agent, I would have consulted with her, if she/he does not work that area, at least you could have ended up being referred to another buyer agent. Please, remember that the listing agent represents the seller not your interests, but those of a seller. Before signing any documents please, try to bring your buyer agent. Good luck!
- Robin Ruth, "Robin Ruth"
- Contributions:1
You have some very valid questions and concerns. The best resource truly is to use a buyer's agent. The agent on site represents the seller, not you. If your agent in Seattle is not familiar with the Olympia market it would be best if they referred you to an agent who is. Again, it is ALWAYS best to be represented by a professional in your real estate transaction.
I'm looking at a house in Olympia, WA. Asking price is $369,000, it's new construction and the bank
The other homes in the complex have sold for $320-385 and they sold 14 last year per zillow, but none so far this year. Most of the ones with the same floorplan have been $370-385 depending on their view.
The preferred lender that owns the home is offering 4.25% interest for 30 years. I'd be doing FHA on it because I only have about 5% down. They suggested I ask the builder to build in the cost of 2% toward closing.
Two questions:
1. Any thoughts on what I should offer? Should I ask the builder to do the 2% or should I just offer less?
2. I've been working with a realtor in Seattle, looking at Seattle homes. I came across this place as an open house and have only dealt with the onsite agents. Should I call the guy in Seattle and get him involved or should I just deal with them? What would be the advantage to getting him involved?
Thanks for any help!
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